New Waterstone(US:WSBF)2020-05-13 20:18Financial Performance - Net income for the community banking segment decreased to $4.1 million for Q1 2020, down from $5.8 million in Q1 2019, with net interest income decreasing by $224,000 to $12.9 million [191]. - The mortgage banking segment reported a net income of $2.0 million for Q1 2020, compared to $719,000 in Q1 2019, with mortgage loan originations increasing by $207.4 million, or 41.4%, to $708.8 million [195]. - Net income decreased to $6.069 million for the three months ended March 31, 2020, down from $6.542 million in the same period of 2019, representing a decline of 7.2% [198]. - Earnings per share (EPS) decreased to $0.24 for both basic and diluted shares, compared to $0.25 for basic and $0.24 for diluted shares in the prior year [198]. Income and Expenses - Total noninterest income increased by $7.2 million, or 29.7%, to $31.5 million during the three months ended March 31, 2020, compared to $24.3 million in the same period of 2019 [209]. - Total compensation, payroll taxes, and other employee benefits increased by $3.3 million, or 20.7%, to $19.4 million for the three months ended March 31, 2020, compared to $16.1 million for the same period in 2019 [197]. - Total noninterest expenses increased by $5.9 million, or 20.0%, to $35.2 million for the three months ended March 31, 2020, compared to $29.3 million for the same period in 2019 [211]. Loan Performance - The provision for loan losses was $750,000 for Q1 2020, compared to a negative provision of $700,000 in Q1 2019, reflecting worsening economic conditions [192]. - The provision for loan losses was $785,000 for the three months ended March 31, 2020, compared to a negative provision of $680,000 for the same period in 2019, reflecting worsening economic conditions due to the COVID-19 pandemic [207]. - Total loans past due increased by $4.6 million, or 70.5%, to $11.0 million at March 31, 2020, from $6.5 million at December 31, 2019 [242]. - The allowance for loan losses increased by $839,000 to $13.2 million at March 31, 2020, compared to $12.4 million at December 31, 2019 [249]. Assets and Liabilities - Total assets increased by $60.3 million, or 3.0%, to $2.06 billion at March 31, 2020, primarily due to increases in loans held for sale and loans receivable [213]. - Total deposits increased by $18.3 million to $1.09 billion at March 31, 2020, driven by a $23.5 million increase in money market and savings deposits [222]. - Total borrowings increased by $38.6 million, or 8.0%, to $522.2 million at March 31, 2020, with the community banking segment adding $40.0 million in short-term borrowings [223]. - Shareholders' equity decreased by $21.9 million to $371.8 million at March 31, 2020, primarily due to dividend declarations and stock repurchases [226]. Capital and Regulatory Compliance - As of March 31, 2020, the company maintained capital ratios exceeding all regulatory requirements, indicating sufficient capital to withstand potential economic downturns [188]. - The company is considered "well capitalized" under regulatory guidelines, exceeding all capital requirements as of March 31, 2020 [268]. COVID-19 Impact - The company modified 164 loans totaling $99.7 million under COVID-19 payment deferral programs, with an additional 13 loans totaling $7.2 million modified for principal and interest deferral [184]. - Interest income may be negatively impacted due to COVID-19-related payment deferrals, with potential future credit losses affecting reported income [187]. - The provision for loan losses was $785,000 for the three months ended March 31, 2020, reflecting an increased allocation due to the COVID-19 pandemic [249]. Mortgage Banking - Total mortgage banking noninterest income rose by $7.2 million, or 30.7%, to $30.8 million in Q1 2020, driven by increased loan production volume [195]. - Mortgage banking income increased by $7.047 million, or 30.2%, to $30.406 million, driven by a total loan origination volume increase of $196.5 million, or 40.0%, to $687.7 million [210].